Entrepreneurs Jimmy Wright and Michael Hall discuss the housing crisis, the challenges faced by those in need of housing, and their efforts to provide affordable housing through their business Launch Capital. They explore the growth of a housing solution for refugees, the importance of building relationships, the challenges of mobilizing funds for affordable housing, and the impact of development policies. They also touch on the inspiring story of Cambodian refugees building a successful donut empire in the US.
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Quick takeaways
Launch Capital focuses on buying existing affordable housing to provide stability for refugee populations.
They challenge the mispricing of risk associated with refugee families and aim to build a real estate company that values them as assets.
Launch Capital advocates for a shift in perspective to address the affordable housing crisis and the issue of NIMBYism by stabilizing existing apartment communities and building relationships.
Deep dives
Building Relationships and Affordable Housing
Launch Capital is a real estate company that focuses on buying existing naturally occurring affordable housing and stabilizing it. They prioritize providing stable housing for refugee populations and work with investors to raise funds for their projects. Their model emphasizes relationship-centered property management, with property managers and resident managers living on-site and providing additional services like ESL classes and community activities. Launch Capital has seen significant impact both at the individual level, helping families achieve stability and financial growth, and at the community level, bridging the gap between refugees and the broader community. Their work aims to counter the housing crisis by creating affordable options and challenging the NIMBY mindset that often opposes such developments. They're also looking to expand their model to more cities and are actively seeking partnerships and investments to make a larger impact.
The Mispricing of Refugee Families
Launch Capital recognizes the mispricing of risk associated with newly arriving Americans, particularly refugee families. They have found that refugees are often seen as unstable due to not being given the option for stability, as they are often placed in substandard housing. However, Launch Capital views refugees as an asset and aims to build a real estate company that values them as such. By mobilizing capital and purchasing existing apartment communities, they stabilize properties and maintain affordable options for refugees. They have seen that refugees are more than their credit scores or rental histories, and by providing stable, attractive housing options, they are able to reduce turnover and maintain financial returns for investors while preserving affordable housing stock.
Challenging the Housing Crisis and NIMBYism
Launch Capital is committed to addressing the affordable housing crisis and the issue of NIMBYism. They acknowledge that the housing market is misaligned, with many properties catering to higher-end markets rather than providing affordable options for those in need. They challenge this misalignment by buying and stabilizing existing apartment communities that serve as naturally occurring affordable housing, particularly in areas with high refugee populations. They advocate for a shift in perspective, encouraging communities to embrace housing developments and welcome those in need. This change in mindset, along with building relationships and fostering connections between refugee families and the broader community, can help break down barriers and contribute to a more inclusive and equitable housing landscape.
The Power of Building Relationships
Launch Capital's model is centered around building relationships and bridging the gap between refugee families and the broader community. By creating opportunities for individuals and organizations to connect with refugees through their properties, they have witnessed the transformative power of genuine relationships. Their approach facilitates engagement, support, and integration, with individuals coming alongside refugees to provide resources, assistance, and friendship. Launch Capital believes that by drawing near to those in need, seeing their humanity, and building relationships with them, they can counter the social segregation and discrimination that often occurs. Their work not only provides stable housing but also fosters a sense of belonging and affirmation for refugee families.
Opportunities for Involvement and Investment
Launch Capital welcomes partnerships, investments, and involvement from individuals, organizations, and communities interested in addressing the affordable housing crisis and supporting refugee populations. They are actively looking for new cities to expand their model, prioritizing locations with strong support systems for refugees. They are seeking operators with real estate or operations backgrounds to join their team and help scale their impact. Additionally, Launch Capital accepts investment from accredited investors who align with their mission and vision. They aim to create investment vehicles that prioritize long-term stability, cash flow, and preserving affordable housing options. By connecting capital to their mission-driven work, Launch Capital believes in making a lasting, positive impact on both individuals and communities.
Why do we as a society keep building more and more housing for people who already have the most options, all the while we are forcing people who most need housing to scramble amidst shortage? How do we not just understand what is happening, but also make something better? Jimmy Wright and Michael Hall were motivated by their Christian faith to do just that via their business Launch Capital. Listen in to get inspired by their creative and hopeful work.
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